Overview
- A public petition surpassed the 50,000-signature threshold on May 21 and the National Assembly automatically sent the repeal request to the Finance and Economic Planning Committee for formal review.
- The tax proposal would levy a combined 20% national income tax and 2% local tax on annual crypto gains above 2.5 million won, a much lower exemption than the roughly 50 million won threshold for stock gains.
- The opposition People Power Party has filed legislation to abolish the crypto tax outright while the Ministry of Economy and Finance and the National Tax Service continue preparing implementation guidance with major exchanges.
- Analysts and petitioners say the policy has already influenced behavior: domestic crypto assets fell roughly 50% from January 2025 to early 2026 and critics warn the tax could encourage capital flight and weaken industry competitiveness.
- What to watch next is the committee review, which can recommend delay, amendment or repeal before the scheduled January 1, 2027 effective date and could determine whether the policy changes or proceeds as planned.